After NY inquiry, CareCredit to offer safeguards

New York state officials say they have reached a settlement with GE Capital Retail Bank that forces the company’s CareCredit LLC subsidiary to add consumer protections to their health care credit card, which can carry interest rates above 26 percent.

State Attorney General Eric Schneiderman says the agreement limits charges in advance and requires the company to disclose higher interest rates that kick in if charges are not paid off at the end of a promotional period.

The settlement ends an investigation by the office’s Health Care Bureau that followed consumer complaints.

GE Capital Retail Bank issues the CareCredit card and contracts with health care providers who offer it to patients to finance treatment.